Union Chief’s Paid Leave of Absence Is Suspended Amid Allegations of Theft

The New York City Central Labor Council is suspending its president’s paid leave of absence amid federal charges that he stole hundreds of thousands of dollars from union members.The labor council’s 32-member executive board yesterday voted unanimously to withhold payments of Brian McLaughlin’s $90,000 annual salary, two days after the federal government unsealed a 44-count indictment on charges that included racketeering, embezzlement, money laundering, and fraud. Mr. McLaughlin is also a Democratic assemblyman representing parts of Queens.The chairman of the council’s executive board, Denis Hughes, who is the president of the state AFL-CIO, initially issued a statement emphasizing that Mr. McLaughlin would be “afforded the opportunity to respond to and defend himself against these allegations.” Yesterday, he cited the accusations of financial impropriety as reason for taking action.“We felt that these were serious enough allegations that necessitated, in the interests of our members, stopping this leave,” Mr. Hughes said in a telephone interview. He said he spoke to Mr. McLaughlin by phone to inform him of the council’s decision, but he declined to elaborate on their conversation.The scope of the charges has put union chiefs in a delicate position when discussing Mr. McLaughlin, who has been praised for his leadership and is generally well-liked. When asked his initial reaction to the 186-page indictment, Mr. Hughes hesitated. “I know Brian well,” he said, pausing. “It was very surprising.”Mr. McLaughlin pleaded not guilty to the charges and is free on bail. He has not spoken publicly since the indictment, and his attorney declined to comment on the labor council’s action.“It’s obvious why the CLC cancelled the paid leave,” an executive board member, Randi Weingarten, the president of the United Federation of Teachers, said in a statement. “The vote speaks for itself.”Mr. Hughes said he had appointed separate committees to audit the labor council’s financial safeguards and to examine the council’s leadership structure. The long-running federal investigation into Mr. McLaughlin became public in March when the FBI raided the labor council’s offices. The council granted him a six-month paid leave of absence beginning last month, and the board appointed Edward Ott to oversee operations as interim executive director.The labor council’s suspension of Mr. McLaughlin came hours after the state attorney general, Eliot Spitzer, the leading gubernatorial candidate, suggested he resign from the Assembly. “My suspicion is that he should,” Mr. Spitzer, a Democrat, said at a union charter school in East New York. “I’m not sure what their protocol is. Obviously, if you read the indictment, you think that it’s something he should seriously consider.”Mr. McLaughlin’s term ends December 31, and he is not seeking re-election. Charles Carrier, a spokesman for the Assembly speaker, Sheldon Silver, said only that the speaker’s office was cooperating with the federal investigation and could not comment on what, if any, action the Assembly would take.Mr. Spitzer’s comments drew criticism from his Republican opponent, John Faso, who said it was “ironic” for Mr. Spitzer to suggest resignation for Mr. McLaughlin, who has pleaded innocent, when the attorney general has supported the Democratic state comptroller, Alan Hevesi, who has admitted he was wrong to allow a state employee to chauffeur his wife over parts of four years.“It’s totally hypocritical,” Mr. Faso said in an interview. “It shows that there are a different set of standards that Eliot Spitzer has for his friends than for those that are less convenient for him.”Mr. Faso said “it would be appropriate” for Mr. McLaughlin to resign.Prosecutors say that over more than a decade, Mr. McLaughlin stole $2.2 million from the Assembly, the labor council, another union, his political campaign committee, and even a Little League baseball program to finance a lavish lifestyle and give gifts to female friends. He allegedly used the money to pay for, among other things, an $80,000 Mercedes-Benz, membership in a Long Island country club, and homes in Albany, Queens, and on Long Island.In a 2004 report filed with federal Department of Labor through his “unsalaried” position at the Internal Brotherhood of Electrical Workers Local 3, Mr. McLaughlin professed modesty. Asked to describe payments he received outside the union, he listed his positions on the labor council and in the Assembly, saying he “sometimes” attended receptions, meetings and other events for these roles.The only gifts or payment he listed were a golf outing and a fleece jacket, which he valued at $150. He also added, “I can say, as a general matter, that I eat very little at the various receptions, events, conferences and meetings I attend.”

Union Chief’s Paid Leave of Absence Is Suspended Amid Allegations of Theft

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